Business

Associated Banc-Corp 4Q earnings up 13.8%

After finishing strong financially in 2012, Associated Banc-Corp is thinking seriously about making an acquisition this year.

The Green Bay parent company of Associated Bank - the biggest bank based in Wisconsin - on Thursday reported a nearly 14% rise in fourth-quarter profits and a 51% jump in earnings for the year as lending increased and delinquent loans decreased.

Associated Bank had net income of $45 million, or 26 cents a share, up from $40 million, or 23 cents, in the fourth quarter of 2011. That matched the average estimate of industry analysts polled by Yahoo Finance.

For all of 2012, the company posted net income of $174 million, or $1 a share, up from $115 million, or 66 cents, in 2011.

Philip B. Flynn, Associated's chief executive, said the bank's position as "a strong Upper Midwestern franchise" has been restored.

"The quarter's strong performance was highlighted by loan and deposit growth as well as higher net interest income," Flynn said.

Associated said its loan portfolio was $15.4 billion at year's end, up $1.4 billion, or 10%, from $14 billion in 2011.

The company said its delinquent loans had decreased 29% from a year ago.

Before the announcement, shares of Associated closed up 21 cents at $14.11

In a conference call with industry analysts, Flynn said Associated was considering using some capital in a "bite-sized" acquisition in 2013.

"We think the best way to do that is look at opportunities in our markets where we have scale, so that if we were to acquire part of an institution or an entire institution, there would be very significant and highly likely cost takeouts to drive the economics of the transaction," Flynn said.

Associated operates in Wisconsin, Minnesota and Illinois. It also has loan offices in the Indianapolis, Cincinnati and Detroit areas.

Flynn said an acquisition has to be "something that makes sense for our shareholders."

"It's highly likely since this institution hasn't done a sizable acquisition for six-plus years that we would do something pretty bite-sized," Flynn said.

He added: "We've worked really hard to put Associated in a good, sound financial position. We're growing across our businesses, we're doing well. We are not going jeopardize the franchise by doing something large that our shareholders end up paying for."